With the current increase in interest in artificial intelligence (AI), Blockchain with zero-knowledge (ZK) layer 2 CryptoGPT has raised $10 million in funding.
The market maker DWF Labs, who has emerged as one of the most active investors during the cryptocurrency bear market, led the Series A round, which gave the AI-focused blockchain a $250 million valuation, per a release.
In addition to building its ZK rollup layer 2 blockchain and a data-to-AI engine, which gathers, encrypts, and transmits data for commercial applications, CryptoGPT also released “Alex,” an AI assistant targeted for Web 3.
“Instead of applying ZK technology to payments, CryptoGPT integrates it for private data transfers,” CryptoGPT said in the statement on Monday.
According to Dejan Erja, co-founder and chief technology officer of the blockchain with an AI emphasis, the funds from the new capital will be used to expand the company’s developer staff internationally and strengthen its regional footprint in the Asian markets.
The main goal of CryptoGPT is to provide consumers the ability to make money by monetizing their data in the fitness, dating, gaming, and educational sectors. Moreover, it intends to release non-fungible tokens (NFT) that hold information about an owner’s activity.
Because of the widespread popularity of the chatbot ChatGPT, interest in cryptocurrencies with an AI emphasis has exploded since the year’s beginning.
Yet, there is significant doubt about the long-term sustainability of such tokens, with opinions that the substantial increases they have seen recently are nothing more than a short-term price boost by shrewd traders riding the hype.
According to information provided by CoinMarketCap, the market value of CryptoGPT’s native token GPT, which was launched in early March of this year, is now slightly over $12 million.
According to CoinGecko statistics, some of the other AI-focused cryptos with greater market caps include Fetch.ai’s FET and SingularityNET’s AGIX.